In a small bowl, combine warm water with sugar and yeast. Stir gently and let sit for 5-10 minutes until foamy.

In a large bowl, whisk together buttermilk, egg, and melted butter until smooth. Gradually stir in the yeast mixture, then add flour until a soft dough forms.

Transfer dough to a greased bowl, cover, and let rise in a warm area until doubled, about 1 hour.

Turn dough out on a floured surface, roll to ½-inch thickness, and cut into 2-inch squares.

Heat oil to 350°F in a deep fryer. Fry squares for 1-2 minutes on each side until golden brown, then drain on paper towels.

Mix powdered sugar, milk, and vanilla in a bowl for glaze. While warm, dip each beignet into glaze.

Serve warm on a plate and enjoy!